Get ready for a derivatives trading meltdown next autumn

New uncleared margin rules will hit hundreds of pension funds and asset managers when they take effect in September

Klaus Meinhardt / Getty Images

By

Peter Rippon

November 29, 2018 Updated: 8:24 a.m. GMT

The cost of derivatives trading in Europe is set for a financially crippling 10-fold increase under new regulation.

These so-called uncleared margin rules, which have already hit a number of larger companies based on the size of their portfolios, will pull in other pension funds and asset managers at an exponential rate each September until 2020.